Sunnyvale Still Considering Tax Measures

The Sunnyvale City Council debated ideas to raise revenue this week despite not being able to nail down specific revenue goals. It was shared that $100 million was needed to replace city traffic lights, $450 million for grade separations, and unspecified amounts for fire station, library and public works upgrades. Additionally, city staff noted that regulatory requirements were also increasing the need for upgradea and city service improvements.

Councilmembers discussed a sales tax increase that would generate about $6.5 million a year. Another idea was an increase in the transient occupancy tax (TOT), or hotel tax, that would generate only $1.5 million. One of the sticking points was a desire to generally avoid any taxes that would require a two-thirds majority from voters. This was in response to the 2024 library bond, which received almost 60% support but failed to get the two-thirds majority vote.

There was some discussion about leading, or partnering, with a community group because citizen initiatives often do not require a two-thirds majority. However, city attorneys cautioned that any partnership, or even coordination, may be sufficient to legally challenge any such measure that succeeds. Further conversations are expected.

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